•Govt extends discounted payment till April 14
•NBA Ikeja to Ambode: reverse charge or face mass protest
The Lagos State government yesterday clarified the figures circulating in the media on the rate for the newly reviewed Land Use Charge Law of 2018.
It said many of the numbers were based on several years of arrears on the levy not paid by affected property owners.
Addressing reporters at the Bagauda Kaltho Press Centre at Alausa in Ikeja, the state capital, Information and Strategy Commissioner Kehinde Bamigbetan said there were several misconceptions and a lot of misinformation about the new law.
The commissioner noted that the law was a progressive enactment by the House of Assembly and handed over to the Executive for implementation in the overall interest of the people.
He dismissed the humongous figures being bandied about on the social media, saying many of the calculations were based on arrears of many years of non-payment.
Bamigbetan said: “The fact is that this law took a long process to be made. It started as a bill and went through the first reading, second reading, public hearing – to which all stakeholders were brought together to debate it – and some of the reliefs we have seen were part of the debate expressed by the stakeholders about the need to protect the vulnerable segment of the society.
“Having made the law, the Lagos State House of Assembly has handed it over to the Executive to implement.
“The second important part is that a lot of relieves have been built into the law, but many people are confusing arrears with the actual figure. If you see those figures, ask whether it is for one year or arrears of several years of non-payment. The humongous figures that are being bandied around, particularly in the social media, relate to the arrears of many years of non-payment which are computed together.”
Also, the Commissioner for Finance, Mr Akinyemi Ashade said the government had extended the period for tax payers to enjoy the 15 per cent discount in the reviewed Land Use Charge Law till April 14.
Ashade said this would enable the government to implement and enforce the new law, as well as allow many property owners to benefit from the discount.
The commissioner, who reacted to the outcry of some sections of the public on the new law, said under the old law, which had not been reviewed since 2001, the Land Use Charge rate was inaccurate and retrogressive as it reportedly deprived the state of keeping track of all economic activities that relate to land across the state.
He said the law, which was reviewed by the House of Assembly and signed into Law by Governor Akinwunmi Ambode on February 8, is a merger of all property and land-based rates and charges in the state.
Ashade said: “There was an urgent need for the repeal, as the old law had not been reviewed for over 15 years – since 2001. Under the old law, the LUC rate was totally inaccurate and retrogressive. It deprived the state of keeping track of all economic activities that relate to land in Lagos State.
“The new law is a consolidation of ground rent, tenement rate, and neighbourhood improvement levy. This charge is payable annually in respect of all real estate properties in the state, which means owners and occupiers holding a lease to a property for 10 years or more are now liable to pay the annual LUC invoice charged.
“Thus, the Tenement Rates Law, the Land Based Rates Law, the Neighbourhood Improvement Charge and all other similar property rates or charges, laws or amendments to any such property laws shall cease to apply to any property in Lagos State as from 2018.
“Nonetheless, all pending invoices, orders, rules, regulations, among others, under the 2001 repealed Law shall continue to be in effect until such obligations are discharged.”
Explaining the calculation of the amount payable, the commissioner said property owners can determine the amount by multiplying the market value of their property by the applicable relief rate of 40 per cent and annual charge rate.
He said: “Upon receiving a notice or not, the new law has made it possible for owners to calculate their charge and enable prompt payment, which allows them to benefit from a 15 per cent discount for early payment, applicable to payments made within 15 days of receipt of demand notice.”
Responding to fears of tenants that the new law might force landlords to increase rent, Ashade said aside the fact that the Lagos State Tenancy Law 2011 was still in force.
The commissioner said the incidence of payment for Land Use Charge under the new law is on the landlord and not the tenant.
He added that the minimum rate was only increased from N1,200 in 2001 to N5,000, while there is provision for self-assessment and Assessment Appeal Tribunal under the new law.
On vacant properties, Ashade said such would be treated on the basis of owner-occupier and not as a commercial property.
He said the target of government is to make commercial property owners to pay a little bit more.
Also, the Ikeja branch of the Nigeria Bar Association (NBA) yesterday urged Governor Akinwunmi Ambode to reverse the new land use charge to the former rate to avoid overburdening the residents with tax.
The body of lawyers described the new tax regime as an “economic genocide”.
The chairman of the branch, Mr. Adesina Ogunlana, who addressed reporters in Ikeja, the state capital, noted that except the new land charge is reversed, the branch would embark on a street protest, tagged: Walk the Talk, next Tuesday over what he called 400 per cent increment in land use charge and other taxes which attracted over 300 per cent increment.
He listed other taxes that attracted increment to include car registration and filing cost of litigation in the Judiciary, which he said “has jumped astronomically, pushing genuine but financially weak litigants away from employing and enjoying access to legal and judicial justice”.
Ogunlana said: “Clearly, the sharp increase in ancillary property tax of the Land Use Charge will have a bandwagon effect on all other services and function in Lagos State as owners of properties and services will automatically transfer other financial burdens to other cashmeres who will have to bear the burden or crumble under the weight.”
